By aussiematesvietnam 
Understanding Local Currency, Exchange & Budgeting in Vietnam
G’day fellow travellers! Aussie Mates here with my better half Tracy. After calling Vietnam home for nearly two decades, we’ve learned a thing or two about navigating the local currency scene. When Tracy and I first landed in Hanoi back in 2003, we were as confused as a koala in a snowstorm about the Vietnamese dong, where to exchange money, and how to budget properly. Today, I’m sharing our hard-earned wisdom to help you avoid the mistakes we made and enjoy your Vietnamese adventure without currency headaches.
[IMAGE:vietnamese-dong-notes]
The Vietnamese Dong: Making Sense of All Those Zeros
The Vietnamese currency is called the dong (VND), and the first thing that strikes most Aussies is the sheer number of zeros. At the time of writing, 1 Australian dollar equals roughly 15,000 VND. This means you’ll quickly become a “millionaire” in Vietnam, as most ATM withdrawals will put at least a million dong in your wallet!
Vietnamese banknotes come in denominations of 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000 VND. The notes are different colours, which helps, but it’s easy to mistake a 10,000 note for a 100,000 note if you’re not careful. Tracy and I developed a system early on – we organize our wallets with larger notes in one section and smaller ones in another.
Here’s a quick reference of what things cost in Vietnam:
- Street food meal: 30,000-50,000 VND ($2-3.50 AUD)
- Mid-range restaurant meal: 100,000-200,000 VND ($7-14 AUD)
- Local beer: 20,000-30,000 VND ($1.30-2 AUD)
- Taxi from airport to Hanoi centre: 300,000-400,000 VND ($20-27 AUD)
- Hotel room (3-star): 600,000-1,200,000 VND ($40-80 AUD)
[IMAGE:street-food-vendor]
Currency Exchange: Where to Get the Best Rates
When Tracy and I first arrived, we made the classic tourist mistake of exchanging all our money at the airport. Don’t be like us! While convenient, airport exchange booths typically offer the worst rates. Here are better options:
ATMs: Convenience at a Cost
ATMs are plentiful in Vietnamese cities and tourist areas. They’re convenient but come with withdrawal limits (typically 2-3 million VND per transaction) and fees (around 50,000-60,000 VND per withdrawal). Some Australian banks have partnerships with Vietnamese banks – for instance, ANZ has its own ATMs in Vietnam. Check with your bank before travelling.
A word of caution from Tracy’s experience: not all ATMs are created equal. Stick to ATMs attached to reputable banks like Vietcombank, BIDV, or international banks. We’ve had cards swallowed by dodgy machines more than once!
Banks and Official Exchange Counters
Banks offer secure currency exchange services with reasonable rates. Most major cities have branches of Vietcombank, Agribank, and BIDV with English-speaking staff. You’ll need your passport for transactions.
In tourist areas like Hoi An and Nha Trang, you’ll find authorized gold shops and jewellery stores that exchange currency, often with better rates than banks. We’ve used these for years without issues.
[IMAGE:currency-exchange-counter]
Credit Cards: Increasingly Accepted
Vietnam has become more card-friendly over the years, but it’s still predominantly a cash economy. Higher-end hotels, restaurants, and shops in major cities accept cards, but you’ll need cash for street food, local markets, and smaller establishments.
If using cards, be aware that some merchants add a surcharge of 2-3%. Also, inform your bank of your travel plans to prevent them from blocking your card for suspicious overseas transactions. Tracy and I learned this lesson the hard way during a trip to Sapa when our card was declined at the only ATM in town!
Budgeting Tips for Australian Travellers
After nearly 20 years in Vietnam, we’ve refined our budgeting approach to make the most of this affordable destination. Here’s how you can do the same:
Daily Budget Expectations
Vietnam can accommodate various travel styles:
- Budget traveller: 600,000-900,000 VND ($40-60 AUD) per day
- Mid-range traveller: 1,200,000-2,100,000 VND ($80-140 AUD) per day
- Luxury traveller: 3,000,000+ VND ($200+ AUD) per day
These figures include accommodation, meals, local transport, and some activities. Tracy and I find that even with occasional splurges, we can travel comfortably in Vietnam for about $100 AUD per day between the two of us.
Money-Saving Hacks
A few tips that have saved us thousands over the years:
- Eat where the locals eat. Follow the crowds for the best, most affordable food.
- Use ride-hailing apps like Grab instead of traditional taxis to avoid being overcharged.
- Negotiate respectfully at markets, but remember that saving a dollar means more to you than to the vendor.
- Book domestic flights in advance – airlines like VietJet and Bamboo Airways offer fantastic deals.
- Consider homestays outside major cities for authentic experiences at lower prices.
[IMAGE:local-market-shopping]
Avoiding Scams and Rip-offs
While Vietnam is generally safe, currency confusion can make tourists vulnerable to scams:
- Always count your change carefully – the 100,000 and 10,000 notes look similar.
- Agree on prices before services (especially with taxis and motorbike taxis if not using apps).
- Be cautious of “money changers” approaching you on the street.
- Keep small denominations handy for small purchases.
Tracy once handed over a 500,000 VND note (about $33 AUD) instead of 50,000 VND for a simple meal. Fortunately, the honest vendor pointed out her mistake – but not everyone will be so forthcoming!
Emergency Funds: Be Prepared
Always have a backup plan. We suggest:
- Carrying cash in different locations (not all in your wallet)
- Having at least two different cards
- Keeping a small USD emergency stash (widely accepted in tourist areas)
- Knowing where Western Union or MoneyGram outlets are located
Conclusion: Money Matters Made Simple
Understanding Vietnam’s currency and managing your money effectively will significantly enhance your travel experience in this beautiful country. Tracy and I have found that with a bit of preparation and these simple strategies, you can focus on enjoying Vietnam’s incredible landscapes, rich culture, and mouthwatering cuisine rather than worrying about financial matters.
Remember, Vietnam offers exceptional value for Australian travellers, with your dollar stretching much further than at home. Whether you’re slurping pho in Hanoi, cruising Halong Bay, or